Legislative Board Diversity

Minimum Standards: Initial to be set before April 1, 2014Companies: Non-public employers with at least 100 employeesPassage Date: November 22, 2012Compliance Date: Minimum standards will go into effect for the 2014-2015 reporting period.Sanctions: Companies that fall below the minimum standard and fail to improve during the next two-year reporting period without a reasonable excuse will be considered non-compliant. After being given notice and a chance to respond, companies may be publicly named by the government and may become ineligible to compete for government contracts or grants and financial assistance.Additional requirements: Starting with the 2013-2014 reporting period, public disclosure of gender equality indicators, such as the composition of the board of directors, in a report signed by the company CEO.

Interim: Efforts made to reach quota must be disclosed in the company’s next annual management report (2012-2013).Passage Date: June 30, 2011 (signed into law September 14, 2011)Compliance Date: Varies, based on company type and fiscal year start. SOEs: 2011-2012; Publicly traded: 2017-2018; Small publicly traded (defined as having < 50% shares available for trading or meeting at least two of the following criteria: less than 250 employees; less than or equal to €43 million in assets; or less than or equal to €50 million in annual net turnover): 2019-2020Sanctions: Post compliance date, if the board comprises fewer than the minimum number of each gender, any newly (re)appointed director of the majority gender is void. Companies are given an additional year (until 2018-2019 for publicly traded; 2020-2021 for small publicly traded) before benefits and compensation for all board members are suspended until the company is in compliance.

Target: Determined by company and accompanied by establishment and explanation of company policy to increase share of underrepresented genderCompanies: Large publicly traded, large private, and SOEs with at least 50 employees (large is defined as having two or more apply across two consecutive financial years: balance sheet total > €143M; turnover > €286M; or average full-time employees > 250).Passage Date: December 14, 2012Compliance Date: April 1, 2013Additional requirements: Large companies must disclose progress against target, including, if applicable, why not yet achieved.

Quota: 40% WBDCompanies: SOEsPassage Date: April 15, 2005Compliance Date: June 1, 2005Additional Information: At least one candidate from each gender should be considered for open seats. Exceptions may be made for special reasons (e.g., no women or no men currently hold positions from which appointments must be made).

Quota: 40% WBD (if < eight directors, difference between genders can’t be > two)Companies: Publicly traded or non-listed companies that have > 500 employees or revenues > €50 million.Interim Quota: Publicly traded companies must have at least 20% WBD by January 2014; during 2012, single-sex boards were required to appoint at least one director of the opposite sex.Passage Date: January 13, 2011Compliance Date: January 2017Sanctions: Fees will not be paid to directors of noncompliant companies.

Quota: 40% of each gender (if < three directors, both genders must be represented)Companies: Publicly traded, private limited, and SOEs with at least 50 employees.Passage Date: March 4, 2010Compliance Date: September 1, 2013

Quota: At least one woman directorCompanies: Publicly traded and every other public company (paid-up share capital > 100 crore rupees or turnover of > 300 crore rupees)Passage Date: August 30, 2013Compliance Date: April 1, 2015Additional Requirements: Upon departure of a woman director, boards should fill the vacancy by the next board meeting or within three months, whichever is later.
Sanctions: A company in non-compliance can be subject to a fine of 50,000 rupees to five lakh rupees.

Interim Quota: 20% WBD by August 12, 2012Passage Date: June 28, 2011Sanctions: Commissione Nazionale per le Società e la Borsa (CONSOB) formally notifies non-compliant companies, which have four months to comply before fines are levied (Boards of Directors: €100,000 - €1,000,000; Supervisory Boards: €20,000 - €200,000); companies are given an additional three months to comply before elected members lose their office.

Quota: 40% WBDCompanies: Publicly traded and SOEsPassage Date: December 19, 2003Compliance Date: 2006 (SOEs); 2008 (publicly traded companies)Sanctions: Brønnøysund Register Centre may refuse to register the board. After notice, continued non-compliance can result in dissolution of the company by court order. Special circumstances may allow for the payment of a compulsory fine until compliance is achieved.

Quota: 40% of each genderCompanies: Publicly traded companies with 250+ employeesPassage Date: March 22, 2007Compliance Date: March 2015Sanctions: No penalty, but gender diversity is taken into account when public subsidies and state contracts are awarded.